WASHINGTON DC: Uber is a step closer in making its flying taxi plans a reality as it has signed a deal with National Aeronautics and Space Administration (NASA) to develop an air traffic management system.

Uber said at the Web Summit tech conference in Lisbon that it signed a Space Act Agreement with NASA for the development of "unmanned traffic management."

Uber had previously unveiled its plans to introduce flying taxi fleets, known as uberAIR, reported CNN.

Uber is already testing another emerging technology, self-driving cars, in various cities around the country, according to the reports.

This is the start-up's first partnership with a US federal government agency.

Uber's partnership is part of NASA's Space Act Agreement, a consortium of industry players working to ensure "safe and efficient operations" of its taxis and other small unmanned aerial systems flying at low altitudes.

Uber plans to trial the project in Los Angeles in 2020 along with the already announced cities Dallas and Dubai, the company said.

It is also hopeful of having commercial operations ready in time for the 2028 Olympics in Los Angeles, the report added.